NEAR proposal slashes yield by 36%, dividing network validators
HSP-029 would gradually cut the annual issuance cap by 36%, while tokens bought and held or staked remain in total supply. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
The NEAR blockchain’s total supply grew by about 2.69 million tokens in the 30.62 days to Oct. 22, while a proposed 36% cut in the issuance cap would slow future dilution and reduce token income for stakers.
The network’s supply rose from 1,306,946,399.1749655 NEAR at block 216701043 on Sept. 22 to 1,309,640,572.7751897 NEAR at block 221111299 on Oct. 22, an increase of 2,694,173.6002242 NEAR (0.20614%) over 31 days.
Net selling and liquid supply available to trade are separate measures. Purchases can support demand while acquired tokens remain part of total supply.
HSP-029, an Oct. 7 proposal in NEAR’s House of Stake governance system, would reduce maximum annual issuance from 2.5% to 1.6%. Slower dilution comes with fewer newly issued rewards, but the effect on price depends on demand and valuation.
As of Oct. 22, NEAR’s protocol configuration still showed a 2.5% maximum annual issuance rate on version 86. The observed setting remained above the proposed 1.6% target.
HSP-029 would retain its stated allocation of 90% of issuance to staking participants and 10% to the treasury. It proposes a 90-day grace period after ratification, followed by a smooth 24-month ramp, with the cap adjusted each epoch.
The change from 2.5% to 1.6% is a 36% reduction of the starting cap. Total supply would still depend on the balance between newly issued tokens and permanent destruction.
Ratification would start the proposed 90-day grace period, and activating the ramp would also require validators to adopt a protocol upgrade. If those steps followed the timetable, the target would arrive roughly 27 months after ratification.
This follows an earlier issuance debate on a proposed reduction from 5% to 2.5% in June 2025. HSP-029 concerns a further reduction from the 2.5% cap observed this October.
NEAR’s Feb. 24 tokenomics explanation describes a governance-controlled set of options for product revenue, including purchases, staking, locking, and redeployment. Its definition of “buyback and earn” expressly leaves the acquired tokens within total supply.
Buying NEAR changes who holds it, while staking or locking can restrict its availability for trading. A permanent burn destroys tokens and reduces total supply. These actions affect different measures, so adding them together under a single deflation label can obscure what holders actually own.
The revenue dashboard’s fee definitions separate gross fees from the revenue retained after payouts to integration partners, solvers, and apps. Gross product fees cannot simply be counted as money spent buying NEAR.
The dashboard’s Oct. 22 all-time wallet breakdown assigned 1,543,672.9 NEAR to buybacks.multisignature.near. At block 221112441, the account itself held about 2,048,151.46 NEAR in its account balance.